It is the 'heavy selling' by FIIs being blamed squarely for meltdown at Dalal Street [Get Quote], but if their market activity patterns are to be believed, overseas investors seem to be over three times more confident than India Inc itself regarding the market's future growth.

According to an analysis of the changes in the listed companies' shareholding patterns since the beginning of this year, the number of companies where foreign institutional investors have raised their holding is bigger than that of those where FII holdings have gone down.

In contrast, the promoters have cut down their holdings in more number of companies as compared to those where they have raised their stakes during the same period.

The data shows that among all the firms having disclosed their latest shareholding pattern as on end of January-March quarter, at least one in three firms have seen an increase in its FII holding. In comparison, only about one in nine has seen its promoters raising their shareholding in the company.

However, indicating a relatively less bullish stand on large-cap companies, the overseas investors have mostly cut down their exposure to the firms with high market values while accumulating more shares in those with lesser valuations.

So far, close to 900 companies have released their shareholding patterns as on March 31, 2008. Out of these, the FIIs have raised their shareholding in as many as 320 companies, while promoter holding has increased in just 117 companies from the levels as on the end of 2007.

Those companies where FIIs have cut down their holdings, include HDFC [Get Quote], ICICI Bank [Get Quote], HDFC Bank, IVRCL Infra, Spice Communications, United Phosphorus [Get Quote], Dr Reddy's Labs, DCB, Axis Bank, Tata Motors [Get Quote], HCL Infosystems [Get Quote] and J&K Bank.

The stock market benchmark Sensex fell about 25 per cent between January and March, while FIIs were net sellers to the tune of shares worth close to $3 billion during this period. The companies where FIIs have upped the ante, include Yes Bank [Get Quote], Essar Shipping [Get Quote], Centurion Bank of Punjab [Get Quote], Financial Technologies, Sesa Goa [Get Quote], Godrej [Get Quote] Consumer, Shree Cement, BEML Ltd, MphasiS, Zee News [Get Quote], Titan Industries [Get Quote], BPCL [Get Quote], Corporation Bank [Get Quote], IL&FS Investsmart, PNB Gilts [Get Quote] and Kinetic [Get Quote] Motor.

The number of companies where promoters have cut down their holdings currently stands higher at 171, while FII holdings have declined in 298 companies since beginning of 2008.

There are a total of 48 companies so far where FII holding has gone down, but promoters have hiked their exposure, indicating a ratio of one in 20 firms. Such companies include Aditya Birla Nuvo [Get Quote], Bajaj Hindustan [Get Quote], Bombay Dyeing [Get Quote], EID Parry, GE Shipping, Indian Hotels, JSW Steel [Get Quote], Reliance Energy [Get Quote], Tata Metalliks, Ultratech Cement [Get Quote], United Breweries [Get Quote] Holding and United Phosphorus.

Besides, 85 companies so far, indicating a ratio of about one in 10, have disclosed an increase in FII holding, but decline in the percentage of shares held by their promoters.

These firms include Ansal Properties, Gammon [Get Quote] Infra, Glenmark [Get Quote] Pharma, Financial Technologies, IL&FS Investsmart, Karur Vysya Bank [Get Quote], Lanco Infratech [Get Quote], M&M Financial, MphasiS, MRF, Petron Engineering, Rolta India [Get Quote], Thomas Cook [Get Quote] India, Uttam Galva Steel and Yes Bank.

Promoters have cut down their shareholdings also in companies like realty giant DLF, Wipro [Get Quote], Reliance Communications [Get Quote], Adlabs Films [Get Quote], HCL Infosystems, Kotak Mahindra Bank [Get Quote], Punj Lloyd [Get Quote], Axis Bank, Mastek, 3i Infotech, Dr Reddy's Labs, HDFC Bank and GV Films.